CC clears laser eye surgery merger

21 Nov 2013 03:48 PM

The Competition Commission (CC) has formally cleared Optimax Clinics Limited’s (Optimax’s) completed acquisition of Ultralase Ltd (Ultralase), after accepting that Ultralase would otherwise have gone out of business.

This confirms the CC’s provisional findings, which were published last month.

Optimax acquired Ultralase, which operated 23 laser eye treatment clinics and three consultation centres across the UK, in November 2012.

In its final report published tyesteray, the CC has concluded that without its sale to Optimax, Ultralase would have failed financially and there would have been no alternative purchaser, leaving just Optimax and Optical Express as the only large suppliers of laser eye treatments in the UK. In that case, the majority of its sales were likely to have gone to Optimax and Optical Express, as alternative suppliers would have been unlikely to capture materially more of Ultralase’s business than with the merger.

The CC has therefore decided to clear the merger because there is no prospect of a more competitive outcome.

The final report is available on the inquiry home page along with other information relating to the inquiry.

Notes for editors

1. The CC is an independent public body, which carries out investigations into mergers, markets and the regulated industries.

2. The members of the Optimax/Ultralase Inquiry Group are: Alasdair Smith (CC Deputy Chairman and Chairman of the Group), John Krumins, Gavin Robert and Ed Smith.

3. The Office of Fair Trading (OFT) referred the case on 29 July 2013 and the CC has been asked to decide whether the acquisition may be expected to result in a substantial lessening of competition in any market or markets for goods or services in the UK. The CC was required to publish its final report by 12 January 2014.

4. The Enterprise Act 2002 empowers the OFT to refer to the CC completed or proposed mergers for investigation and report which create or enhance a 25 per cent share of supply in the UK (or a substantial part thereof) or where the UK turnover associated with the enterprise being acquired is over £70 million.

5. The CC has a 24-week period in which it is required to publish its report, which may be extended by no more than eight weeks if it considers that there are special reasons why the report cannot be published within that period.

5. Further information on this inquiry, including the terms of reference and other key documents, as well as on the CC and its procedures, including its policy on the provision of information and the disclosure of evidence, can be obtained from the CC website at: www.competition-commission.org.uk.

6. Enquiries should be directed to Rory Taylor or Siobhan Allen or by ringing 020 7271 0242.